Elron Electronic Industries (ELRN) http://www.elron.com/ gained 66.31% ($3.07) early in the session boosting its market cap to $228 million with a current price of $7.70. ELRN trading volume topped 2,132,832 shares traded by 11 a.m. EST.
ELRN announced today, that further to it previous announcement on July 28, 2009, Medingo Ltd., a group company held 92% by Elron and its subsidiary, RDC - Rafael Development Corporation Ltd., has received formal clearance from the FDA to market its Solo MicroPump Insulin Delivery System in the U.S. Medingo intends to introduce the Solo MicroPump at the American Association of Diabetes Educators Meeting which will take place in August 2009 in Atlanta, U.S.A.
Three Parts of the Puzzle
So why is an electronic company like ELRN prospering from FDA approval? Wise investment and diversity is the answer. ELRN primarily is involved in technology products and services including: Internet services and solutions; Internet technologies; broadband access; airborne satellite antenna services; telecom services; and IT security services. ELRN is also heavily involved with semiconductor products that include application specific integrated circuits, process control technology, tools and related hardware, and software infrastructure. The third leg of the stool is ELRN's medical devices involvement which includes: diagnostic and therapeutic tools that are used for ophthalmology, cardiology, neurology, diabetes, urology, women's health, and gastrointestinal disorders.
At $7.70, ELRN is pennies away from its 52-week high of $7.99 set on 08-12-08 and is far above its 52-week low of $1.05 set on 11-21-08. At $7.70, ELRN is far ahead of its 50-day and 200-day moving averages. ELRN has $10 million in trailing twelve month revenues. Its public float is half of its shares outstanding and that's the only red flag for an investor.
Onto Earnings Season
Gaining 18.29% ($3.09) in early trading is S&P SmallCap 600 ATC Technology (ATAC) http://www.goatc.com/ which is now trading in the $20 range with a new market cap of $395 million. ATAC has a 3-Month average daily trading volume of 202,369 shares and it had culminated half of that today within the first few hours.
ATAC reported Q2 numbers today (for the quarter ended June 30) and the numbers were way better than expected. ATAC earned 54 cents (excluding a goodwill charge). Analysts were looking for 41 cents a share. It also beat revenue expectations by nearly two million and beat its fiscal year earnings by saying they would be somewhere between $2.05 and $2.15. Analysts were speculating $1.78 on guidance. Way to go ATAC.
ATAC provides outsourced supply chain logistics services and engineering solutions to the consumer electronics industries, and light and medium/heavy-duty vehicle aftermarket primarily in the U.S. ATAC operates through two segments: Logistics and Drivetrain.
At $20, ATAC is below its 52-week high of $27.05 set on 07-30-08 and far above its 52-week low of $8.57 set 03-06-09 (a good buy signal). At $20, ATAC is above both its 50day and 200-day moving averages. ATAC has $514 million in trailing twelve month revenues and its shares out versus float ratio is at parity.
Another gainer from earnings is ViroPharma (VPHM) http://www.viropharma.com/ which gained 16.81% ($1.16) in early trading today. With a 3-Month average daily trading volume of 1,462,510 shares, VPHM more than doubled that early in the session topping 3,327,494 shares traded. VPHM is now trading in the $8 range.
VPHM buyers bought in today not on the Q2 numbers reported (which were lackluster as costs of sales soared), but on VPHM's management guidance for the future.
VPHM second-quarter profit fell 30 percent on sharply higher costs and sinking sales of its bacterial infection treatment. VPHM earned $16.1 million, or 20 cents per share, compared with profit of $22.8 million, or 29 cents per share, during the same period a year prior. Revenue rose 25 percent to $81.9 million from $65.4 million. And there was a Q2 incentive to buy, even though sales were down, VPHM beat analysts by two cents on EPS and by $6.4 million on revenue expectations.
VHPM management said it is revising its guidance for the year, and Cinryze, its growth driver, would do sales between $80 million and $95 million in 2009. Sales equals revenues and that set the 'buying' tone this morning.
VHPM drugs in development include: Maribavir, which is in Phase III clinical development stage for the prevention and treatment of cytomegalovirus disease; and non-toxigenic strains of C. difficile, which is in preclinical stage for the treatment and prevention of CDI. VHPM has lots of strategic relationships with Big Cap firms. Lots.
At $8, VPHM is nearly half its 52-week high of $15.16 set on 09-03-08 and is above its 52-week low of $3.79 set on 03-03-09. At $8, VPHM is ahead of both its 50-day and 200-day moving averages. VPHM has trailing twelve month revenues of $241 million and its shares out versus float ratio is at parity.
Another S&P SmallCap 600 company that jumped on earnings news this morning is Stratasys Inc., (SSYS) http://www.stratasys.com/ which picked up 17.13% ($2.14) in early trading and set a new market cap of $295 million. SSYS is now trading in the $14.63 range. SSYS has a 3-Month average daily trading volume of 148,712 shares and had nearly reached that by 11 a.m. EST.
Q2 revenue for SSYS was $24.6 million versus $31.3 million reported for the same period in 2008. System shipments totaled 442 units for the second quarter of 2009, versus 540 for the same period last year. SSYS reported net income of approximately $850,000 for the second quarter, or $0.04 per share, compared to net income of $4.1 million, or $0.19 per share, for the same period last year. SSYS revenue was $47.8 million for the six-month period ended June 30, 2009 versus $62.0 million reported for the same period in 2008. System shipments totaled 1,033 units for the six-month period of 2009, versus 1,117 for the same period last year.
Not great numbers, but not horrible either considering the recession.
SSYS develops, manufactures, and sells three dimensional (3D) printing, rapid prototyping (NASDAQ:RP), and direct digital manufacturing (NYSEARCA:DDM) systems primarily in North America, Europe, and the Asia Pacific.
At $14.63, SSYS is below its 52-week high of $21.05 set on 07-30-08 and above its 52-week low of $7.58 set on 03-30-09. At $14.63, SSYS is ahead of both its 50-day and 200-day moving averages. SSYS has $116 million in trailing twelve month revenues and its shares out versus float ratio is near-parity.